As another holiday season approaches, the U.S. Postal Service is once again rolling out temporary rate increases on select shipping services. Here’s a breakdown to help you understand what’s changing, when it starts, and how to plan accordingly.
What’s Changing — and Why
USPS has submitted a plan to the Postal Regulatory Commission to temporarily raise prices for some package services including:
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Priority Mail Express
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Priority Mail
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USPS Ground Advantage
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Parcel Select
These adjustments are set to take effect around midnight Central on October 5, 2025, and will remain in place through January 18, 2026
Estimated rate increases by service and segment:
| Service | Avg. Increase (2025 Holiday) |
|---|---|
| USPS Ground Advantage | 5.1%–5.3% |
| Priority Mail | ~5.6%–5.8% |
| Priority Mail Express | ~5.6%–5.7% (retail), ~4.9% (commercial) |
These hikes are part of USPS’s Delivering for America strategy to offset peak-season surcharges and align pricing competitively
Why It Matters Now
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Budget Impact: Small businesses and holiday shippers will feel the pinch—especially those planning heavy gift and package volumes.
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Timing Is Everything: With increases starting in early October, preparing and shipping early could mean significant savings.
USPS anticipates millions of additional packages per day during the holidays, making these rates a critical cost-containment tool
Mail Rate Increases on the Horizon
In addition to package rate changes, USPS has also raised postage for First-Class Mail:
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Forever stamp price rises from $0.73 to $0.78 as of July 13, 2025—this 5-cent increase marks a 7.4% jump and is the largest in recent history
How You Can Prepare
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Ship Early – Aim to send gifts and parcels in September to beat the price increase.
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Compare Services – Consider alternatives like regional carriers or expedited services.
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Pass Along Costs – If shipping is a hidden cost, communicate adjustments to customers in advance.
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Batch Ship – Consolidate pickups or deliveries to reduce per-item costs.
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Use Discounts – Platforms like Pirate Ship often offer holiday shipping discounts.
Final Thoughts
USPS’s temporary holiday surcharges are a predictable yet impactful part of the shipping rhythm—especially for small businesses juggling cost and consumer expectations. By planning ahead, you can dodge the worst of the rate bump and keep those holiday packages moving affordably.
Need help calculating cost differences between USPS services during the holiday period or comparing them with FedEx/UPS options? I can help you model that out.
